Beijing is pouring billions into artificial intelligence, from humanoid robots to AI-powered tutors, as it races to dominate global tech by 2030

China is accelerating its artificial intelligence (AI) revolution at an unprecedented pace. From household chess-playing robots to humanoid machines in factories, AI is being woven into the fabric of daily life. And at the heart of this technological surge is an ambition that has rattled Silicon Valley—China wants to be the world’s AI superpower by 2030.

Eight-year-old Timmy is already living in this future. His AI-powered chess companion not only plays against him but learns from his moves, offering a glimpse into a world where machines are more than just tools—they are interactive teachers and friends. His mother, Yan Xue, sees AI as an “inevitable” part of life, a view the Chinese Communist Party has been pushing since it declared AI the “main driving force” of national progress in 2017.

The Rise of ‘China’s AI Dragons’

The Chinese AI industry is booming, with more than 4,500 firms developing and selling AI-powered solutions. The January debut of DeepSeek, a chatbot that rivals ChatGPT, sent shockwaves through the industry, proving that China could bypass US-imposed tech restrictions and still compete at the highest level.

The nation’s ambitions are backed by staggering investments. Beijing has pledged 10 trillion yuan ($1.4 trillion) over the next 15 years, with AI funding receiving a fresh boost during the recent National People’s Congress. In January, a $60 billion AI investment fund was launched—just days after the US tightened chip export controls.

DeepSeek’s unexpected success has turned its CEO, Liang Wenfeng, into a national icon. His company is one of six homegrown AI firms dubbed “China’s six little dragons”—alongside Unitree Robotics, Deep Robotics, BrainCo, Game Science, and Manycore Tech. At a recent AI expo in Shanghai, these companies showcased everything from search-and-rescue robots to backflipping, dog-like machines.

AI in Everyday Life: A Nation Transformed

Beyond high-tech showcases, AI is being rapidly integrated into daily life. Schools in Beijing will introduce AI courses for primary and secondary students this year, while universities are expanding their AI degree programmes. China produces more STEM graduates than any other country—3.5 million in 2020 alone—ensuring a steady flow of engineers to drive its AI revolution.

For parents like Yan Xue, AI is already a household necessity. She spent $800 on Timmy’s robot, believing it to be an investment in his future. SenseRobot, the company behind the chess-playing machine, has sold over 100,000 units and recently secured a deal with Costco in the US.

Tommy Tang, a representative for SenseRobot, frequently encounters surprised reactions from foreign buyers who assume the product is from the US or Europe. “They always have a few seconds of silence when I tell them it’s Chinese-made,” he says.

The Dark Side: Data, Privacy, and Global Suspicion

As China’s AI industry gains momentum, so do concerns over data security. AI thrives on vast amounts of information, and with China’s one billion mobile users, the country holds an enormous advantage.

Western governments, wary of Beijing’s influence, have acted swiftly. The US, South Korea, Taiwan, and Australia have placed restrictions on Chinese AI apps like DeepSeek, fearing potential data access by the Chinese Communist Party. Washington has already banned TikTok from government-issued devices, citing similar concerns.

Chinese firms insist their data policies are independent, but suspicions remain. Even Beijing’s state-run media acknowledges that China’s AI expansion faces resistance. A commentary in the Beijing Daily warned that DeepSeek’s rise had triggered “hostile reactions from the West” and that the industry still operates in an “uncertain development environment.”

The Manufacturing Edge: Cheaper, Smarter, Faster

Despite geopolitical tensions, China’s AI firms are pressing ahead, leveraging one of their greatest strengths—cost-effective innovation. DeepSeek made headlines not just for its performance but for its efficiency; it rivals ChatGPT at a fraction of the cost.

Manufacturers are also applying AI to reduce production expenses. When Tommy Tang’s team realised that a robotic arm for their chess-playing bot would push the price to $40,000, they turned to AI-driven manufacturing to cut costs. The result? A final product priced at just $1,000.

“This is innovation,” Tang says. “AI isn’t just a tool—it’s now part of the manufacturing process itself.”

A Future Powered by Machines

China’s AI transformation extends far beyond chess robots and chatbots. State media already showcases humanoid robots filling factory floors, and Beijing recently announced plans to deploy AI-powered robots to care for its rapidly ageing population.

President Xi Jinping has made “technological self-reliance” a national priority, especially in response to US-imposed semiconductor restrictions. But even as China races to close the gap, officials acknowledge that this is a long-term game. The Beijing Daily cautioned against premature “AI triumphalism,” reminding readers that China is still in “catch-up mode.”

Yet, the momentum is undeniable. AI is no longer a distant future for China—it is the present. From classrooms to living rooms, from factory lines to international markets, the nation is reshaping itself through artificial intelligence. The question now is not whether China can compete in the AI arms race, but whether the rest of the world can keep up.